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China's growth to average 4.6% over next decade: S&P

August 30, 2019

SINGAPORE -- China's economy will grow at an average annual pace of about 4.6% over the next decade, according to an assessment  by S&P Global Ratings. After four golden decades of growth, China's economy will slow due to demographics, deleveraging, rebalancing from manufacturing to services, and simply becoming richer, which means less room for catch-up, S&P says. And although growth will slow, the reasons are natural and mostly healthy.

Financial ties between China banks and insurers raise systemic risk: S&P

August 20, 2019

HONG KONG -- Easing regulations have allowed China's insurers to increase holdings in bank-related assets, including capital instruments. But while this benefits banks that need capital, and insurers looking for yield and duration, growing financial-sector cross-holdings could multiply systemic risk, S&P Global Ratings said in a report published today.

China's US$3 trillion Local Government debt problem proves sticky, says S&P

August 22, 2019

HONG KONG -- China's efforts to exit RMB20 trillion (US$3 trillion) in hidden local government debt has been ineffective, according to S&P Global Ratings. "China's central authorities have tried to force local governments to drag their liabilities into view, and onto balance sheets," S&P Global Ratings credit analyst, Susan Chu, said.

More Hong Kong traders look to offshore production, procurement

August 9, 2019

HONG KONG -- With the US continuing to impose additional tariffs of up to 25% on many imported Chinese products, more Hong Kong traders are looking to cushion the impact by actively shifting their production or procurement bases to ASEAN countries -- such as Cambodia, Indonesia, Myanmar, the Philippines and Thailand -- that benefit from the US's Generalised System of Preferences (GSP).